Daily Pivots: (S1) 1.3947; (P) 1.4065; (R1) 1.4129; More….

Intraday bias in GBP/USD remains neutral first despite the deep retreat from 1.4240. Outlook stays bullish with 1.3828 support intact and further rally is in favor. On the upside, break of 1.4240 will resume larger rise from 1.1409 to 1.4376 long term resistance and then 100% projection of 1.1409 to 1.3482 from 1.2675 at 1.4748. However, firm break of 1.3828 will bring deeper correction to 1.2675/3482 support zone.

In the bigger picture, rise from 1.1409 medium term bottom is in progress. Further rally would be seen to 1.4376 resistance and above. Decisive break there will carry larger bullish implications and target 38.2% retracement of 2.1161 (2007 high) to 1.1409 (2020 low) at 1.5134. On the downside, break of 1.3482 resistance turned support is needed to be first indication of completion of the rise. Otherwise, outlook will stay cautiously bullish even in case of deep pullback.

Source link